Configure Tax Entities

At least one tax entity is required per tax. For example, if you collect state sales tax, you must add a tax entity for that state. When you add the actual tax to the system, you select the state tax entity and assign it a tax rate percentage.

You can also use multiple tax entities to group similar taxes together. For example, if your organization collect sales tax, you may need to collect different sales taxes for state, city, and county governments. With tax entities, you can create an entity for each state, city, and county sales tax you collect. You can then add a single sales tax to the system and assign all three entities to it. In this scenario, when a patron makes a purchase, they will see a single “Sales tax” line item on their receipt and the tax they pay is a combined percentage that totals all three entities.

Optionally, you can choose not to use multiple entities for a single tax and instead add three separate sales taxes to the system. In this scenario, when a patron makes a purchase, they will see a line item for each sales tax on their receipt instead of a single combined sales tax item.

Tip: You can pre-define tax entities in Administration or add them as you go when you add each tax to the system.

After you add a tax entity, you can edit or remove it as necessary. If a tax entity is no longer in use, but you do not want to delete it, you can make it inactive. Inactive tax entities cannot be used when you configure taxes.